This paper discusses intergovernmental relationships between education service agencies (ESAs) in Pennsylvania and the agencies they serve, namely, the state department of education and local school districts. Some suggestions made are that ESA policies retain flexibility and that local control be retained in ESA programs, for example, through local school board members becoming members of the ESA board of directors. In addition, ESAs should maintain independence from state departments of education in order to respond more appropriately to local school district needs. A position paper attached at the end of the document describes the relationship between the Pennsylvania state department of education and its intermediate units. (Author/LD)